SINGAPORE, Jan 7 (Reuters) - Asian refining margins for 10 ppm gasoil slid to their weakest in more than six weeks on Thursday as traders worried about a hit to demand recovery due to renewed lockdowns in several markets.
Refining margins, or cracks, for 10 ppm gasoil GO10SGCKMc1 plunged to $4.74 a barrel over Dubai crude during Asian trading hours, a level not seen since Nov. 23 and down from $5.19 per barrel a day earlier.
Cracks for the benchmark gasoil grade have fallen 22% so far this week.
The gasoil market is coming under renewed pressure as some refineries are ready to increase run rates, even while demand growth is not materlialising and lockdowns are being introduced again, a middle distillates trader said.
Cash differentials for gasoil with 10 ppm sulphur content GO10-SIN-DIF were at a discount of 38 cents a barrel to Singapore quotes, the widest discounts since Nov. 10. They were at a discount of 35 cents per barrel on Wednesday.
The prompt-month time spread for 10 ppm gasoil in Singapore GO10SGSPDMc0 , which has stayed in a contango for the last two weeks, traded at a discount of 16 cents per barrel on Thursday, Refinitiv Eikon data showed.
INVENTORIES
- Singapore's middle distillate inventories dropped 4.5% to a more than four-month low of 14.5 million barrels in the week to Jan. 6, according to Enterprise Singapore data. O/SING1
- Weekly Singapore middle distillate inventories averaged about 13.9 million barrels in 2020, Reuters calculations showed. This week's stocks were 50.5% higher than a year ago.
- U.S. distillate stockpiles rose by 6.4 million barrels in the week to Jan. 1, versus expectations for a 2.3 million-barrel rise, the U.S. Energy Information Administration data showed on Wednesday. EIA/S
SINGAPORE CASH DEALS O/AS
- Two gasoil deals, no jet fuel trades
OTHER NEWS
- Oil prices hit their highest since late February on Thursday after a fall in U.S. stockpiles added further support following the unilateral decision by Saudi Arabia to cut output. O/R
ASSESSMENTS MID-DISTILLATES
CASH ($/T)
ASIA CLOSE
Change % Change Prev Close RIC Spot Gas Oil 0.5%
57.12
0.45
0.79
56.67 GO-SIN GO 0.5 Diff
-1.57
0.02
-1.26
-1.59 GO-SIN-DIF Spot Gas Oil 0.25%
57.22
0.45
0.79
56.77 GO25-SIN GO 0.25 Diff
-1.47
0.02
-1.34
-1.49 GO25-SIN-DIF Spot Gas Oil 0.05%
57.32
0.45
0.79
56.87 GO005-SIN GO 0.05 Diff
-1.37
0.02
-1.44
-1.39 GO005-SIN-DIF Spot Gas Oil 0.001%
58.31
0.4
0.69
57.91 GO10-SIN GO 0.001 Diff
-0.38
-0.03
8.57
-0.35 GO10-SIN-DIF Spot Jet/Kero
56.87
0.41
0.73
56.46 JET-SIN Jet/Kero Diff
-0.16
-0.03
23.08
-0.13 JET-SIN-DIF
For a list of derivatives prices, including margins,
please double click the RICs below.
Brent M1
BRENTSGMc1
Gasoil M1
GOSGSWMc1
Gasoil M1/M2
GOSGSPDMc1
Gasoil M2
GOSGSWMc2
Regrade M1
JETREGSGMc1
Regrade M2
JETREGSGMc2
Jet M1
JETSGSWMc1
Jet M1/M2
JETSGSPDMc1
Jet M2
JETSGSWMc2
Gasoil 500ppm-Dubai
GOSGCKMc1
Cracks M1
Gasoil 500ppm-Dubai
GOSGCKMc2
Cracks M2
Jet Cracks M1
JETSGCKMc1
Jet Cracks M2
JETSGCKMc2
East-West M1
LGOAEFSMc1
East-West M2
LGOAEFSMc2
LGO M1
LGOAMc1
LGO M1/M2
LGOASPDMc1
LGO M2
LGOAMc2
Crack LGO-Brent M1
LGOACKMc1
Crack LGO-Brent M2
LGOACKMc2